PRE-LEASED Home - Long-Term Tenant!
Vance, AL 35490
3bd • 2ba • Built: 2007
| Projected Income | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Projected Rent | $15,900 | $16,536 | $17,197 | $17,885 | $18,601 | $19,345 | $20,119 | $20,923 | $21,760 | $22,631 |
| Vacancy Losses | ($1,272) | ($1,323) | ($1,376) | ($1,431) | ($1,488) | ($1,548) | ($1,609) | ($1,674) | ($1,741) | ($1,810) |
| Operating Income | $14,628 | $15,213 | $15,822 | $16,455 | $17,113 | $17,797 | $18,509 | $19,249 | $20,019 | $20,820 |
| Estimated Expenses | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Property Taxes | ($1,170) | ($1,205) | ($1,241) | ($1,278) | ($1,317) | ($1,356) | ($1,397) | ($1,439) | ($1,482) | ($1,527) |
| Insurance | ($720) | ($742) | ($764) | ($787) | ($810) | ($835) | ($860) | ($886) | ($912) | ($939) |
| Management Fees | ($1,032) | ($1,073) | ($1,116) | ($1,161) | ($1,207) | ($1,256) | ($1,306) | ($1,358) | ($1,412) | ($1,469) |
| Leasing/Advertising Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Association Fees | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Maintenance | ($318) | ($328) | ($337) | ($347) | ($358) | ($369) | ($380) | ($391) | ($403) | ($415) |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Operating Expenses | ($3,240) | ($3,348) | ($3,459) | ($3,574) | ($3,692) | ($3,815) | ($3,942) | ($4,074) | ($4,209) | ($4,350) |
| Income Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Net Operating Income | $11,388 | $11,866 | $12,363 | $12,881 | $13,420 | $13,982 | $14,567 | $15,176 | $15,810 | $16,470 |
| - Mortgage Payments | ($8,944) | ($8,944) | ($8,944) | ($8,944) | ($8,944) | ($8,944) | ($8,944) | ($8,944) | ($8,944) | ($8,944) |
| = Cash Flow | $2,444 | $2,922 | $3,419 | $3,937 | $4,477 | $5,038 | $5,623 | $6,232 | $6,866 | $7,527 |
| + Principal Reduction | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| + Appreciation | $10,800 | $11,448 | $12,135 | $12,863 | $13,635 | $14,453 | $15,320 | $16,239 | $17,214 | $18,246 |
| = Gross Equity Income | $13,244 | $14,370 | $15,554 | $16,800 | $18,111 | $19,491 | $20,943 | $22,471 | $24,080 | $25,773 |
| Capitalization Rate | 6.0% | 5.9% | 5.8% | 5.7% | 5.6% | 5.5% | 5.4% | 5.3% | 5.2% | 5.1% |
| Cash on Cash Return | 5.0% | 6.0% | 7.0% | 8.0% | 9.1% | 10.3% | 11.5% | 12.7% | 14.0% | 15.3% |
| Return on Equity | 23.7% | 21.4% | 19.6% | 18.2% | 17.1% | 16.2% | 15.4% | 14.8% | 14.2% | 13.8% |
| Loan Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Market Value | $190,800 | $202,248 | $214,383 | $227,246 | $240,881 | $255,333 | $270,653 | $286,893 | $304,106 | $322,353 |
| - Loan Balance | ($135,000) | ($135,000) | ($135,000) | ($135,000) | ($135,000) | ($135,000) | ($135,000) | ($135,000) | ($135,000) | ($135,000) |
| = Equity | $55,800 | $67,248 | $79,383 | $92,246 | $105,881 | $120,333 | $135,653 | $151,893 | $169,106 | $187,353 |
| Loan-to-Value Ratio | 70.8% | 66.7% | 63.0% | 59.4% | 56.0% | 52.9% | 49.9% | 47.1% | 44.4% | 41.9% |
| Potential Cash-Out Refi | $17,640 | $26,798 | $36,506 | $46,797 | $57,704 | $69,267 | $81,523 | $94,514 | $108,285 | $122,882 |
| Sale Analysis | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|
| Equity | $55,800 | $67,248 | $79,383 | $92,246 | $105,881 | $120,333 | $135,653 | $151,893 | $169,106 | $187,353 |
| - Closing Costs | ($13,356) | ($14,157) | ($15,007) | ($15,907) | ($16,862) | ($17,873) | ($18,946) | ($20,082) | ($21,287) | ($22,565) |
| = Proceeds After Sale | $42,444 | $53,091 | $64,376 | $76,339 | $89,019 | $102,460 | $116,708 | $131,810 | $147,819 | $164,788 |
| + Cumulative Cash Flow | $2,444 | $5,366 | $8,785 | $12,723 | $17,199 | $22,237 | $27,860 | $34,093 | $40,959 | $48,486 |
| - Approximate Cash Invested | ($49,050) | ($49,050) | ($49,050) | ($49,050) | ($49,050) | ($49,050) | ($49,050) | ($49,050) | ($49,050) | ($49,050) |
| = Net Profit | ($4,162) | $9,407 | $24,111 | $40,011 | $57,168 | $75,647 | $95,518 | $116,853 | $139,728 | $164,223 |
| Internal Rate of Return | -8.5% | 9.4% | 14.9% | 17.1% | 18.1% | 18.4% | 18.6% | 18.5% | 18.4% | 18.3% |
| Return on Investment | -8.5% | 19.2% | 49.2% | 81.6% | 116.6% | 154.2% | 194.7% | 238.2% | 284.9% | 334.8% |
*Information is not guaranteed and investors should do their own research, get professional advice and conduct due diligence prior to investing.